Insurance Supervisory Levies Collection Act 1989

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No. 18 of 1989

An Act to make provision for the collection of the levy imposed by the General Insurance Supervisory Levy Act 1989 and the Life Insurance Supervisory Levy Act 1989, and for related purposes

[Assented to 20 April 1989]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

Short title

1. This Act may be cited as the Insurance Supervisory Levies Collection Act 1989.

Commencement

2. This Act commences on the day on which it receives the Royal Assent.

Interpretation

3. In this Act, unless the contrary intention appears:

“Commissioner” means the Insurance and Superannuation Commissioner appointed under the Insurance and Superannuation Commissioner

Act 1987, or a person for the time being acting as Insurance and Superannuation Commissioner under that Act;

“company” has the same meaning as in the Life Insurance Act 1945;

“general insurance levy” means levy that is payable in accordance with subsection 6 (1) or (2) of this Act (being levy imposed by the General Insurance Supervisory Levy Act 1989);

“leviable day” means:

(a) in relation to a body corporate that is required to lodge accounts under subsection 44 (1) of the Insurance Act 1973—a day after 23 August 1988 during any part of which an authority under that Act authorising the body corporate to carry on insurance business was in force;

(b) in relation to Lloyd’s—a day after 23 August 1988 during any part of which Part VII of the Insurance Act 1973 was in force; or

(c) in relation to a company that is required to lodge accounts under paragraph 52 (2) (a) of the Life Insurance Act 1945—a day after 23 August 1988 during any part of which the company was registered under that Act;

“levy” means general insurance levy or life insurance levy;

“life insurance levy” means levy that is payable in accordance with subsection 6 (3) of this Act (being levy imposed by the Life Insurance Supervisory Levy Act 1989);

“Lloyd’s” has the same meaning as in the Insurance Act 1973.

Act to bind Crown

4. This Act binds the Crown in right of the Commonwealth, of each of the States, of the Australian Capital Territory, of the Northern Territory and of Norfolk Island.

Extension to external Territories

5. (1) This Act, insofar as it relates to general insurance levy, extends to each external Territory to which the Insurance Act 1973 extends.

(2) This Act, insofar as it relates to life insurance levy, extends to each external Territory to which the Life Insurance Act 1945 extends.

Liability to levy

6. (1) A body corporate that is required to lodge accounts under subsection 44 (1) of the Insurance Act 1973 for a period that includes a leviable day is liable to pay a levy for that period.

(2) Lloyd’s is liable to pay a levy for each period:

(a) for which Lloyd’s is required to lodge accounts under clause 3 of the Schedule to the Insurance Act 1973; and

(b) that includes a leviable day.

(3) A company that is required to lodge accounts under paragraph 52 (2) (a) of the Life Insurance Act 1945 for a period that includes a leviable day is liable to pay a levy for that period.

When levy due for payment

7. (1) General insurance levy payable by a body corporate (other than Lloyd’s) for a period is due and payable on whichever of the following days is the later:

(a) the day by which the body corporate is required to lodge accounts under subsection 44 (1) of the Insurance Act 1973 for that period;

(b) the twenty-eighth day after the date of commencement of this Act.

(2) General insurance levy payable by Lloyd’s for a period is due and payable on whichever of the following days is the later:

(a) the day by which Lloyd’s is required to lodge accounts under clause 3 of the Schedule to the Insurance Act 1973 for that period;

(b) the twenty-eighth day after the date of commencement of this Act.

(3) Life insurance levy payable by a company for a period is due and payable on whichever of the following days is the later:

(a) the day by which the company is required to lodge accounts under paragraph 52 (2) (a) of the Life Insurance Act 1945 for that period;

(b) the twenty-eighth day after the date of commencement of this Act.

(4) For the purposes of this section, any extensions of time for lodging accounts shall be disregarded.

Penalty for non-payment of levy

8. (1) If any levy payable by a person remains unpaid after the time when it became due for payment, the person is liable to pay to the Commonwealth, by way of penalty, an amount calculated at the rate of 20% per annum on the amount unpaid, computed from that time.

(2) The Commissioner may remit the whole or a part of an amount payable under this section.

Recovery of levy etc.

9. The following amounts may be recovered by the Commonwealth as debts due to the Commonwealth:

(a) levy that is due and payable;

(b) an amount that is payable by way of penalty under section 8.

Delegation by Commissioner

10. (1) The Commissioner may, by writing, delegate to a person occupying or performing the duties of a specified office in the branch of the Australian Public Service under the control of the Commissioner all or any of the Commissioner’s powers under this Act.

(2) The delegate is, in the exercise of a power delegated under subsection (1), subject to the directions of the Commissioner.

Review of decisions

11. (1) An application may be made to the Administrative Appeals Tribunal for review of a decision made under subsection 8 (2).

(2) Where the Commissioner makes a decision under subsection 8 (2) and gives to a person whose interests are affected by the decision notice in writing of the decision, that notice shall:

(a) in all cases—include a statement to the effect that, subject to the Administrative Appeals Tribunal Act 1975, application may be made to the Administrative Appeals Tribunal, by or on behalf of any person whose interests are affected by the decision, for review of the decision; and

(b) except where subsection 28 (4) of that Act applies—include a statement to the effect that a request may be made under section 28 of that Act by or on behalf of such a person for a statement setting out the findings on material questions of fact, referring to the evidence or other material on which those findings were based and giving the reasons for the decision.

(3) A failure to comply with subsection (2) does not affect the validity of the decision.

Regulations

12. The Governor-General may make regulations, not inconsistent with this Act, prescribing matters:

(a) required or permitted by this Act to be prescribed; or

(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act;

and in particular:

(d) providing for the manner of payment for levy and other amounts payable to the Commonwealth under this Act; and

(e) providing for the refund (or other application) of overpayments.

[Minister’s second reading speech made in—

House of Representatives on 2 March 1989

Senate on 9 March 1989]

Overview

The Insurance Supervisory Levies Collection Act 1989 was enacted by the Queen, the Senate, and the House of Representatives of the Commonwealth of Australia to address the need for an effective system for collecting levies imposed by the General Insurance Supervisory Levy Act 1989 and the Life Insurance Supervisory Levy Act 1989. This Act facilitates the collection of these levies, which are intended to fund the regulatory and supervisory activities of insurance entities. The legislation also binds the Crown and extends its provisions to external territories, ensuring comprehensive oversight across all relevant jurisdictions. The primary policy objective is to establish a clear and efficient mechanism for levy collection, ensuring that the regulatory functions are adequately funded, thereby maintaining the integrity and effectiveness of the insurance supervisory framework.

Scope and Application

The Insurance Supervisory Levies Collection Act 1989 applies to the collection of levies imposed by the General Insurance Supervisory Levy Act 1989 and the Life Insurance Supervisory Levy Act 1989. Specifically, the Act binds the Crown in right of the Commonwealth, each state, the Australian Capital Territory, the Northern Territory, and Norfolk Island. It extends to all external territories to which the Insurance Act 1973 and Life Insurance Act 1945 apply. The Act imposes a liability on body corporates required to lodge accounts under the Insurance Act 1973, Lloyd’s, and companies required to lodge accounts under the Life Insurance Act 1945, provided that the relevant period includes a leviable day. The general insurance levy is due and payable on the later of the day the body corporate is required to lodge accounts or 28 days after the commencement of this Act. Similarly, the life insurance levy is due on the later of the day the company is required to lodge accounts or 28 days after the commencement of this Act. Failure to pay the levy results in a penalty of 20% per annum on the unpaid amount. The Commissioner has the power to remit penalties and can delegate their powers to specified officers. Decisions made under this Act can be reviewed by the Administrative Appeals Tribunal, and the Governor-General may make regulations to provide for exemptions, remissions, payment methods, and refunds.

Key Provisions

The Insurance Supervisory Levies Collection Act 1989 (Cth) (the "Act") primarily governs the collection of levies imposed by the General Insurance Supervisory Levy Act 1989 and the Life Insurance Supervisory Levy Act 1989. Key sections include definitions of terms such as "Commissioner," "general insurance levy," and "leviable day" (sections 3, 6), and provisions regarding the liability of entities to pay the levy (sections 6, 7) and the due dates for payment (section 7). The Act also specifies the penalties for non-payment of the levy (section 8) and provides for the recovery of unpaid levies and penalties (section 9). Additionally, it allows for the delegation of powers by the Commissioner (section 10) and establishes procedures for review of decisions (section 11). The Act further authorises the Governor-General to make regulations necessary for its implementation (section 12). The Act imposes several obligations on entities liable to pay the levy. Firstly, it requires specified entities, such as body corporates, Lloyd’s, and companies, to pay a general insurance levy or a life insurance levy if they are required to lodge accounts for a period that includes a leviable day (section 6). The due date for the payment of these levies is determined by the latest of either the date by which the entity is required to lodge its accounts or 28 days after the Act comes into force (section 7). The Commissioner, who is the Insurance and Superannuation Commissioner appointed under the Insurance and Superannuation Commissioner Act 1987, has the authority to delegate his powers under this Act to specified officers in the Australian Public Service (section 10). Decisions made by the Commissioner under this Act can be reviewed by the Administrative Appeals Tribunal, and affected parties must be notified of their right to seek such review (section 11). The Act imposes civil consequences for non-compliance, including the imposition of a penalty for non-payment of the levy. Specifically, if any levy remains unpaid after its due date, the person liable to pay it must also pay a penalty calculated at 20% per annum on the unpaid amount (section 8). The Commissioner may remit all or part of this penalty. The Act allows for the recovery of both the unpaid levies and the penalties as debts due to the Commonwealth (section 9). Failure to comply with these obligations can lead to financial liabilities and enforcement actions by the Commonwealth. The Act also provides for the Governor-General to make regulations that are not inconsistent with the Act. These regulations can include provisions for exemptions from the levy, remissions of the levy, the manner of payment, and the refund of overpayments (section 12). Such regulations are intended to ensure the smooth implementation and administration of the Act. Failure to comply with these regulations could result in further civil liabilities or penalties as prescribed by the regulations themselves.

Area of Law: Insurance Law
Instrument: Act
Concepts: Definitions & Interpretation; Commencement Provisions; Offence Provisions

Interactions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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